Likely to get a mortgage with a default?

ryantcb

This has been asked before sure but this is my thread and I hope to get a more tailored response to my situation.
As title says we want to buy our first home and a resent credit report flagged up a default from 5 years ago of £2000. I knew nothing of this and thing is where it had defaulted the report clearly shows my making repayments so I am now it dispute with the credit company to have it removed for being unjust. Oh the point the mortgage. We have a joint income of £82000 deposit of 10% would have been more but stupid bloody stamp duty swallows £8,000 (well done for getting the economy going there George). We would like to get a house valued at £260,000 how painful will the satisfied default actually be? Have had personal loans paid in full credit cards (from my bank) etc all no problems for last 7 years.
Thanks for the replies

kingstreet

If you are able to have this default removed, do so. You are unlikely to get a mortgage with a default so recent with only 10% deposit.

Is it on all three versions of your credit file? If you don't know, obtain the others and check;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

opinions4u

Nobody pays £260k for a house.

Nudge the price down to £249,999 and offer them sixpence cash in hand for carpets and curtains.

There. I've just saved you £5,300 in stamp duty.

Unfortunately you'll probably need a 25% deposit to have any hope of a mortgage.

fawd1

opinions4u wrote: »

Nobody pays £260k for a house.

Nudge the price down to £249,999 and offer them sixpence cash in hand for carpets and curtains.

There. I've just saved you £5,300 in stamp duty.

Unfortunately you'll probably need a 25% deposit to have ny hope of a mortgage.

I was about to say the same thing. Surely if they want 260k for the house, then you negotiate to pay 249999 for the house and the extra ten grand for fixtures and fittings?

ryantcb

Well the property is very nice and lots of offers. 2 were made whilst we were there at a viewing at the open house. We decided to offer the asking price just so our offer is accepted then through the solicitor we will see if they can wangle some magic to make the house sale £250k and £10k fixtures etc. We just though it puts us in a more powerful position if the seller focuses on selling to us.


I have check my Experian report and the default does not show there. It is though on my Noddle report.

kingstreet

So, it shows on Call Credit, but not on Experian?

What about Equifax?

ryantcb

not sure of Equifax. whether it does or doesn't will likely have no bearing on my chances at a mortgage anyway because you never know which of the agencies the lender will do a search on.

Thrugelmir

ryantcb wrote: »

We decided to offer the asking price just so our offer is accepted then through the solicitor we will see if they can wangle some magic to make the house sale £250k and £10k fixtures etc. We just though it puts us in a more powerful position if the seller focuses on selling to us.

Solicitors aren't members of the Magic Circle. Up to you to find fixtures and fittings to the value of £10k. Rather than being in a powerful position you may well come across as time wasters instead I fear.

kingstreet

ryantcb wrote: »

not sure of Equifax. whether it does or doesn't will likely have no bearing on my chances at a mortgage anyway because you never know which of the agencies the lender will do a search on.

I beg to differ.

Experience of many brokers will tell them which lenders to approach and which ones to leave alone, based on the entries on each version of your credit file.

Dave_Ham

Hi there,

Sure you appreciate the magnitude of the stamp duty thresholds, so five grand is five grand difference upfront..

You are incredibly unlikely to get 10k fixtures and fittings, as these days items need to be specified individually and the real worth assessed. The specific term is chattels, but budget for the 3 percent stamp if I was you.

As kings said, the inconsistency of the credit files could give you an opportunity as decent brokers understand the processes and can place accordingly.

Good luck...